Russia to Reduce Gas Price for Armenia

March 13, 20151,081 Views

Russia reducedThe Armenian authorities and the management of Gazprom (Russia) have come to an agreement to reduce the gas price on the Armenian border from 189 to 165 USD, Zhamanak (Time) newspaper says, citing its own sources close to the Armenian Government.

“The Armenian dram depreciation against US dollar might raise the gas tariff for the population, but this step will prevent it”, the newspaper says. It adds that the issue of possible rise in electric power tariffs remains topical in the light of the serious financial problems faced by Electric Networks of Armenia.

The document signed on December 2, 2013 by the governments of Armenia and Russia on duty-free supplies of petroleum products, natural gas and natural uncut diamonds to Armenia became a ‘curtain-raiser’ to the country’s accession to the Customs Union, which reduced the contract price for the natural gas from $270 to $189 per 1,000 cu m. In this light, the pricing procedures for the gas supply of Armenia are based on the current price – $189 per 1,000 cu m. The expenses on transportation of gas up to the border of Georgia and Armenia are added to it.

Gazprom Armenia CJSC (former ArmRusgasprom cjsc) is engaged in organization of natural gas supplies from Russia to Armenia. The company was founded in 1997. In addition, the company is transporting, storing, distributing and selling natural gas, reconstructing and expanding the gas transportation system and underground gas storage facilities in Armenia.